Stock Monitor: AeroVironment Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 12, 2017 / Active-Investors free earnings report on Spirit AeroSystems Holdings, Inc. (NYSE: SPR) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=SPR. Spirit AeroSystems reported its third quarter fiscal 2017 operating results on November 01, 2017. The Aircraft parts maker surpassed revenue expectations while its earnings were in-line with market estimates. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is currently working on the research report for AeroVironment, Inc. (NASDAQ: AVAV), which also belongs to the Industrial Goods sector as the Company Spirit AeroSystems. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Spirit AeroSystems Holdings most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
www.active-investors.com/registration-sg/?symbol=SPR
Earnings Highlights and Summary
For the quarter ended September 28, 2017, Spirit reported net revenue was $1.75 billion, up 2% compared to net revenue of $1.71 billion in Q3 2016, primarily driven by higher production deliveries on the Boeing 737 and 787 programs and increased defense-related activity. Analysts were expecting revenue of $1.73 billion.
Spirit's backlog at the end of Q3 2017 was approximately $45 billion, with work packages on all commercial platforms in the Boeing and Airbus backlog.
For Q3 2017, Spirit reported operating income of $211 million, down slightly compared to operating income of $214 million in Q3 2016, primarily due to lower production deliveries on the Boeing 777 program and lower Global Customer Support & Services (GCS&S) activity.
Spirit posted net income of $147.2 million, or $1.26 per diluted share, compared to net income of $145.1 million, or $1.16 per diluted share, in Q3 2016. The Company's earnings met Wall Street's estimates of $1.26 per share.
Spirit's Segment Results
Spirit has three business segments, namely: (i) Fuselage Systems, (ii) Propulsion Systems, (iii) Wing Systems
During Q3 2017, the Fuselage Systems segment's revenue grew 9% to $957 million on a y-o-y basis, primarily due to higher production deliveries on the Boeing 737 and 787 programs as well as increased defense work and non-recurring activity on certain Boeing programs. The segment's operating margin for the reported quarter dropped to 15.5% compared to 16.2% during the year earlier same quarter, primarily due to lower GCS&S activity. In Q3 2017, the segment recorded pretax $(2.4) million of unfavorable cumulative catch-up adjustments and net forward losses of $(0.9) million.
For Q3 2017, the Propulsion Systems segment's revenue fell 10% to $408 million on a y-o-y basis, primarily driven by lower production deliveries on the Boeing 777 program and decreased GCS&S activity. The segment's operating margin for the reported quarter increased to 18.2% compared to 17.1% in the year ago corresponding period, primarily driven by higher non-recurring revenue on certain Boeing programs. In Q3 2017, the Propulsion division recorded pretax $2.4 million of favorable cumulative catch-up adjustments and net favorable change in estimates on forward loss programs of $1.3 million.
During Q3 2017, the Wing Systems segment's revenue edged up 1% to $382 million on a y-o-y basis, primarily due to higher production deliveries on the Boeing 737, A350 XWB, and A320 programs. The segment's operating margin for the reported quarter decreased slightly to 13.3% versus 13.6% in the prior year's comparable quarter. In Q3 2017, Wing systems recorded pretax $(2.8) million of unfavorable cumulative catch-up adjustments and net forward losses of $(2.4) million.
Cash Matters
During Q3 2017, Spirit's cash from operations grew 9% to $291 million compared to $266 million in Q3 2016. The Company's free cash flow in the reported quarter was $240 million, up 12% compared to free cash flow of $214 million in the year ago same period.
Spirit's cash balance at the end of Q3 2017 was $727 million. The Company's $650 million revolving credit facility remained undrawn at the end of the reported quarter.
During Q3 2017, Spirit repurchased 2.7 million shares for $194 million. The Company has $598 million remaining on its repurchase authorization
Outlook
Spirit reaffirmed its guidance for FY17. The Company is forecasting revenue to be in the range of $6.8 billion to $6.9 billion. The Company expects adjusted earnings per share to be between $5 and $5.25, and free cash flow to be in the band of $500 million to $550 million.
Stock Performance Snapshot
December 11, 2017 - At Monday's closing bell, Spirit AeroSystems Holdings' stock declined 1.33%, ending the trading session at $83.82.
Volume traded for the day: 804.83thousand shares.
Stock performance in the last month – up 4.51%; previous three-month period – up 12.19%; past twelve-month period – up 37.36%; and year-to-date – up 43.65%
After yesterday's close, Spirit AeroSystems Holdings' market cap was at $9.71 billion.
Price to Earnings (P/E) ratio was at 29.47.
The stock has a dividend yield of 0.48%.
The stock is part of the Industrial Goods sector, categorized under the Aerospace/Defense Products & Services industry.
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